Distinguish between physical capital and financial capital and give two examples of each.
Question content area bottom
Part 1
Physical capital is _______. Financial capital is _______.
A.
the stocks that can be purchased on the stock market and the bonds that can be purchased on the bond market;
money in the bank
B.
money in the bank or in the ATM;
the stocks that can be purchased on the stock market and the bonds that can be purchased on the bond market
C.
the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services;
the funds that firms use to buy physical capital
D.
inventories of raw materials and semifinished goods;
the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services